The settlement was approved by a district court in Minneapolis in
September 2000, and class members had until Jan. 29, 2001, to
participate. American Express has set aside $215 million for class
members and will pay up to $28 million in plaintiffs' attorneys
fees.

The products involved were issued primarily by IDS Life Insurance
Co., an American Express subsidiary, and sold by reps with American
Express Financial Advisors.

At press time, it was not known how many of the more than two
million eligible customers will apply for relief, according to Brad
Friedman, one of the attorneys for the class with Milberg Weiss Bershad
Hynes & Lerach in New York. The settlement covers policyholders
from Jan. 1, 1985, to Feb. 29, 2000.

The plaintiffs alleged that the firm and its brokers churned
insurance policies and annuities, overstated product performance,
misrepresented insurance as an investment product, and wrongly sold
annuities to qualified plans and senior citizens.

American Express was aware of the churning activity, trained
advisers to encourage replacement and provided sales materials to that
effect, according to the complaint. The suit claims that more than 25%
of IDS' insurance sales were internal replacements.

The firm would not comment on specific allegations, and in settling
the suit, admits no liability.

Class members have three options - general relief, which provides an
accidental death benefit; internal replacement relief, whereby
transaction costs of replacement are restored; or an individual claims
review.

A fairness hearing is scheduled in March to review the response of
class members. American Express expects to pay the claims throughout
this year, according to Tom Joyce, a Minneapolis-based spokesperson for
the firm.

"We are pleased that the settlement has been reached and that we can
put this issue behind us," Joyce says.